Thought of the Day 05.01.09

The working hypothesis behind capitalism is that people are rational, meaning they will generally act in their own self-interest. Whether they really are is another matter.

Yesterday, Baskin Robins had their annual 31 cent scoop day. Economic theory would tell you to expect a significantly higher demand when the prices are dropped so low. Economists would not have been disappointed. My family and I stood in a line that stretched at least twenty deep out the store last night for about fifteen minutes waiting for our cheap ice cream.

During our wait, I overheard others quip that they could probably buy a half gallon for less money at the grocery store next door and even sell it to the crowd at 20 cents a scoop for a tidy profit. Still, no one left the line. Obviously, their analysis didn’t consider flavor variety, product quality, and ambiance. The only other conclusion is that people are not fully rational.

All I know is that my three scoops were delicious.